TEHRAN (PIN) -- Karun Petrochemical Company, the first of its type in Iran to attract foreign capitals, has succeeded in producing new materials of isocyanate, meeting not only domestic needs, but also exporting.

The production of the product prompted PIN to conduct an exclusive interview with Karun Petrochemical Company Managing Director Jalal Movahhed. Q: What are the main activities of Karun Petrochemical Company in 2007?

A: Our main activities in the current year revolve around presence in the market and supply of toluene di-isocyanate (TDI). This is the first time Iran is producing TDI. The product is the raw material of all insulators and is greatly used in home appliances, automaking, and glue industries.

The company’s Commercial Department made great efforts and explored the unknown international TDI market, managing to attract good clients across the world. The supply of product in the world cannot meet the real need and therefore it could be sold at a high price.

In addition, we have planned to provide the domestic market with the product and export 30 thousand tons of our 40 thousand ton output. Q: How is the TDI production project going and what have you done in this regard?

A: We have provided a lot of required chemicals through domestic and overseas markets. Due to lack of financial resources, we received a 400 billion rial (43.2 million dollars) loan from Eghtesad Novin (EN) Bank in two stages in order to fulfill our commitments at due time.

Concerning the lab, we have purchased and installed all necessary equipment and they are ready to be tested. We have also made good progress in supplying electricity and precision tools last year and the construction operations of the first phase are to end within the next two months, leading to the initial inauguration of the project.

We have installed two main high-speed hydrogen and chloride treatment units that are being completed.

In the meantime, we held training courses for 24 of our key staff in our Sweden-based office that masters the technical know-how.

We have also dispatched two 20-strong groups of exploitation, safety, and repair units to India late last year to pass their supplementary courses in a similar unit and get familiar with the process.

Everything is going well and the first phase of the project is scheduled to come on stream in late June.

We hope that we will face no unpredicted event and the job will be done on time. Q: Considering that Karun Petrochemical Company is the first Iranian company in this sector that absorbs foreign capitals, would you elaborate on the way and time of attraction of investment?

A: In 2001, we signed a joint venture with Iran’s National Petrochemical Company (NPC), Sweden’s Chematur Engineering, and Germany’s Hansa Chemie, with the NPC having 40 percent of stake and the two foreign companies holding 30 percent of share. Chematur is responsible for offering engineering service, supplying processing systems, and providing the technology.

Since Hansa Chemie did not increase its capital as mentioned in the venture, the NPC transferred 20 percent of the German company’s stake to Iran’s Petrochemical Industries Investment Co. (PIIC). Q: What was the main reason behind the selection of these two companies for the joint venture?

A: Hansa Chemie, due to its great experience in marketing and sales of chemicals particularly TDI in the world, is in charge of doing marketing and selling the product.

The technology of isocyanate production has been acquired mostly by American companies and only the Swedish company Chematur agreed to transfer the technical know-how to Iran. Still, Chematur is originally an American company.

Q: Do political issues have impact on attraction of foreign capitals by the Iranian petrochemical sector? A: Up to now, political problems have not affected our relations with foreign companies, but they could have impact in the future and deny us an easy access to necessary materials. However, we do our best to provide the required materials through every possible way. Our partner Chematur has guaranteed to supply the materials and render the engineering service.

We hope to take a stride in the petrochemical industry and our production benefits the country a lot.

Isocyanates bring about high value added as scores of downstream industries need them. The production of this product inside the country helps prevent the flight of huge foreign currency.